The Strategy of Manipulating Conict

نویسندگان

  • Sandeep Baliga
  • Tomas Sjöström
چکیده

Two decision-makers choose hawkish or dovish actions in a con‡ict game with incomplete information. The decision-making can be manipulated by “extremists” who send publicly observed cheaptalk messages. The power of extremists depends on the nature of the underlying con‡ict game. If actions are strategic complements, a “hawkish extremist” (provocateur) can increase the likelihood of con‡ict by sending messages which trigger a “fear-spiral”of hawkish actions. This reduces the welfare of both decision-makers. If actions are strategic substitutes, a “dovish extremist”(paci…st) can send messages which cause one decision-maker to back down and become more dovish. This reduces his welfare but bene…ts the other decision-maker. The hawkish extremist is unable to manipulate the decision-makers if actions are strategic substitutes, and the paci…st is equally powerless if actions are strategic complements.

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تاریخ انتشار 2009